How to Calculate Funding Fees on Perpetual Futures (With Examples)

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Introduction

Funding fees look tiny on a single settlement, but across a multi-day hold they add up. This guide shows exactly how to calculate them, with worked examples for both long and short positions — and a free calculator to do the arithmetic for you.

Educational content only. You enter every number manually; nothing here connects to an exchange or account.

The formula

Funding per interval = Notional value × Funding rate

Where:

• Notional value is your position size in USD. For a coin position, multiply quantity × entry price.
• Funding rate is the rate quoted for one interval, which can be positive or negative.

To get the total, multiply by the number of settlements you hold through:

Total funding = Notional × Rate × Number of intervals

The sign depends on your side: a long pays when the rate is positive; a short receives when the rate is positive.

Example 1 — Long, positive rate

• Side: Long
• Notional: $10,000
• Rate: 0.01% every 8 hours
• Hold: 1 day (3 settlements)

Per settlement: 10,000 × 0.0001 = $1.00. Over 3 settlements: −$3.00 — you pay, because you're long and the rate is positive.

Example 2 — Short, positive rate

Same numbers, but short. Now you receive funding: +$3.00 over the day.

Example 3 — Higher frequency

• Notional: $5,000, Rate: 0.01% every 1 hour, Hold: 12 hours → 12 settlements.
• Per settlement: 5,000 × 0.0001 = $0.50. Total: $6.00.

Shorter intervals mean more settlements, so the same per-interval rate accrues faster.

Annualizing the rate

To compare funding across rates and intervals, annualize it:

APR ≈ Rate × number of intervals per year

A 0.01% 8-hour rate ≈ 0.01% × 1,095 ≈ 10.95% per year. That context helps you judge whether a position's funding is meaningful.

Let the calculator do it

Rather than reaching for a spreadsheet, use the free Funding Fee Calculator. Choose your side, enter size (USD or coins × price), the rate, your interval and how long you'll hold — it returns the per-funding amount, total, effective percentage and annualized APR instantly. Logged-in users can even add a result straight to their bankroll as a manually tracked trade.

Key takeaways

• Funding = notional × rate × number of intervals.
• Long pays on positive rates; short receives on positive rates.
• Shorter intervals accrue faster; annualize to compare.
• Skip the spreadsheet — use the Funding Fee Calculator.